Digimarc Valuation

Is DMRC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DMRC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DMRC ($25.81) is trading below our estimate of fair value ($111.6)

Significantly Below Fair Value: DMRC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DMRC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DMRC. This is calculated by dividing DMRC's market cap by their current preferred multiple.
What is DMRC's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	US$551.27m

DMRC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	13.4x
Enterprise Value/EBITDA	-13.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does DMRC's PS Ratio compare to its peers?

The above table shows the PS ratio for DMRC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	7.6x
DJCO Daily Journal	8.9x	n/a	US$633.9m
HKD AMTD Digital	18.5x	n/a	US$514.9m
MGIC Magic Software Enterprises	1x	4.2%	US$514.1m
YEXT Yext	2x	5.4%	US$795.7m
DMRC Digimarc	14.3x	18.4%	US$551.3m

Price-To-Sales vs Peers: DMRC is expensive based on its Price-To-Sales Ratio (14.3x) compared to the peer average (7.6x).

Price to Earnings Ratio vs Industry

How does DMRC's PE Ratio compare vs other companies in the US Software Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	15.7%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	15.7%
	n/a	n/a	n/a

No more companies

Price-To-Sales vs Industry: DMRC is expensive based on its Price-To-Sales Ratio (14.3x) compared to the US Software industry average (4.5x).

Price to Sales Ratio vs Fair Ratio

What is DMRC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DMRC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	14.3x
Fair PS Ratio	3.7x

Price-To-Sales vs Fair Ratio: DMRC is expensive based on its Price-To-Sales Ratio (14.3x) compared to the estimated Fair Price-To-Sales Ratio (3.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DMRC forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	US$25.81	US$34.00 +31.7%	17.6%	US$40.00	US$28.00	n/a	2
Aug ’25	US$31.39	US$34.00 +8.3%	17.6%	US$40.00	US$28.00	n/a	2
Jul ’25	US$30.48	US$34.00 +11.5%	17.6%	US$40.00	US$28.00	n/a	2

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.